Analysis of Starbucks in 2012 Essay Example | Topics and Well Written Essays - 1000 words

Analysis of Starbucks in 2012 - Essay Example Starbucks has always been determined in establishing a large network of its stores both in America and all around the world. The cooperation leads in selling coffee as a result of selling its products at a premium rate in order maximize their profits. There are several questions about Starbucks that may need answers. Will the glamor of sensualist Starbucks coffee be retained or will more engaging options shake the success of Starbuck’s main coffee products? Will advertisement help Starbucks maintain its position as a world leader coffee chain producer? The most appropriate point to begin from is evaluating the current coffee market; undertaking an analysis to determine the level over which consumers need the designer coffee is important. Starbucks faces stiff competition from its major competitor such as McDonalds, Dunkin Donuts and Caribou coffee. The management has been engaged to ensure that the company maintains its well-known reputation as major coffee chain cooperation. Recently, Starbucks’ competitor McDonald launched its campaign on Mccafe in which its aim is to sell coffee at a relatively low discount as compared to Starbucks. McDonalds enjoys the advantage of an excellent podium from which it can face its competitors as a result of establishing numerous stores that gives it easy access into the markets. Dunkin Donuts as well is not relaxed; Dunkin is seen to use its doughnuts and other menu items on the stage. The customer has the option of choosing between a coffee donut and a mug of coffee. Externally, Starbucks also deals with daily competitive challenges. For instance, in Singapore, The Coffee Bean and Tea leaf is always on the forefront to contain the giant coffee chain store. For Starbucks, manageable development results to embracing business plans and operations to meet the requirements of Starbucks’ stakeholders currently while sustaining, safeguarding and ensuring the availability of natural and human resources that may b e required in the future. Each and every coffee store in Asia eyes Starbucks. The coffee chain has established 1,744 stores in the Asian Pacific with Singapore having a total of 92 stores. Recently, Starbucks announced the establishment of 100 new stores with each in Philippines and Malaysia. Starbucks never waits for its competitors is when to follow the suit. It has been seen to be expanding its markets outside America to increase its profitability. Starbucks recently purchased Teavana Holdings at a cost of $620 million in an effort to expand its markets. Starbucks is faced with some challenges in the event of serving its customers. One major challenge is the price of coffee beans as factor behind the company’s major profit. Starbucks’ profit and coffee price hugely rely on coffee price beans which are a product and stands not to be altered by Starbucks. As a result of hedge money, climatic conditions and other related factors, the cooperation is in a position of not able to approximate the price of its coffee and the cooperation’s profitability. Product pricing is another major setback. Starbucks’ product and services experience makes the company to charge high prices on its coffee. In contrast, McCafe premium coffee is selling at a lower price as compared to Starbucks’ premium coffee and was well assessed. After review, another challenge faced by Starbucks is negative publicity. The public has